Down with a three-day loss to US GDP

• EUR / USD posted a lower bearish lower at 1.1215.
• The pair appears on track to set the new low 2019 below 1.11.
• A larger decline could be observed if US GDP in the first quarter were maintained unchanged or revised upwards.

The EUR / USD looks set to test the recent low of 1.1107, after falling for a third consecutive day on Wednesday and could post new lows in 2019 at the North American session if the US report better first quarter GDP than expected.

The currency pair is currently trading at 1.138, representing marginal gains on the day.

The common currency fell by 0.26% on Wednesday, with German employment data confirming that the strongest economy in the eurozone is going through a difficult period. Germany's unemployment rate rose from 4.9% to 5%, the first increase in two years. In addition, Germany recorded the largest increase in unemployment of one month in 10 years.

The pair had lost 0.11% and 0.28% on Monday and Tuesday, respectively. With the series of three-day defeats, the EUR set a higher low, at 1.1215. As a result, the 1,1107 trough reached May 23 could come into play during the European session, especially as trade tensions between the United States and China show no signs of a decline.

In addition, the new lows of 2019 could fall below 1.111 if US macroeconomic data were above market expectations, leading to a decline in the Fed's likelihood of rate cuts.

The annualized gross domestic product (T1), expected at 12:30 GMT, should show that the US economy has grown by 3.1%, compared with an initial growth estimated at 3.2%. The economy recorded a growth rate of 2.2% in the fourth quarter.

EUR / USD could, however, reverse its course to repeat the test at 1.1215 (May 27th high) if US GDP were revised downwards, thus boosting fears of recession and reinforcing the need for a new currency. early reduction of rates by the Fed.

Pivot levels